JICA Rwanda Office

One Village One Product (OVOP) Program Phase I (June 2011 – June 2012)

I.1. Background

The "One Village – One Product" (OVOP) Project stands as the capitalization of a community based local development experience initiated in Japan (Oita Prefecture) since the early 1980’s. The "OVOP" approach consists of promoting community based development through local resources' exploitation.

It is specific for promoting the creation of value addition on local products and services by establishing a strategy that is based essentially on three key concepts, namely:

• Self-reliance and creativity: Reliance on own human capital, innovation spirit and locally available resources and as key to socio-economic prosperity.
• Think globally, Act locally: Utilization of locally available resources as business opportunity to break into domestic, regional or international market.
• Human resources development: Sustained development of value added communities through continuous capacity building process.

Justification of OVOP in Rwanda

As provided by the EDPRS, SMEs make important contributions to economic and social development through employment and wealth creation and thereby poverty reduction among the community members. Diversification of sustainable SMEs is important for development as they are recognized as the main engine for economic growth. It is thus necessary to support private initiatives and promote businesses based on community innovation. In this regard, OVOP Program in Rwanda, embedded in the SME Development Policy, will contribute to providing support services to business communities, including rural ones, in order to achieve sustainable economic growth by producing value added products that are marketable domestically and internationally, using locally available resources. The Program will also contribute to developing vigorous local communities.

Vision

The vision of the Program is to foster innovative and sustainable SMEs significantly contributing to national socio-economic development.

Overall Goal

The overall goal of the Program is to support development of SMEs that produce value-added products and services by using locally available resources which leads to poverty reduction through creation of employment opportunities.

Program Objectives

• To create jobs and income to local communities;
• To strengthen the communities' self-reliance;
• To promote local wisdom and resources;
• To promote human resource development;
• To promote communities' creativity in product development in harmony with local tradition and norms.

Following the flow of implementation of OVOP program in Rwanda as planned by the Strategic Plan approved by the Ministry of Trade and Industry (Minicom), the Rwanda Development Board (RDB), the Rwanda Cooperative Agency (RCA), the Private Sector Federation (PSF) and the Japan International cooperation Agency (JICA), Sixty two (62) business groups spread over 4 target districts (Huye, Musanze,Nyagatare and Rubavu) he been accommodated through OVOP program business support scheme.

Screening criteria for business groups

• Level of Community Owner Ship
• Utilization of Local Resources
• Value Addition;
• Market Potential
• Community Empowerment
• Project Leadership
• Self-Reliance and Sustainability
• Business Plan

Achievements and results

Nyagatare district groups evaluation

A total of 14 OVOP groups had been evaluated:

-9 groups out of 14 have improved their scoring in regard of initial baseline data

-5 groups out of 14 have decreased their scoring in regard of initial baseline data

-1 group out of the 5 above-mentioned has been degraded from C to D.

Outstanding example: CODETRAPANYA (Cooperative de Transformation des Produits Agricoles de Nyagatare) has increased its income through identification of 9 new customers following market survey analysis training provided to them though OVOP.

Huye district groups evaluation (Annex 3)

A total of 12 OVOP groups had been evaluated:

-11 groups out of 12 have improved their scoring in regard of initial baseline data

-5 groups out of 12 have improved their grading in regard of initial baseline data (2 from B- to B+ and 2 from C to B- and 1 from D to C)

-1 group out of the 5 above-mentioned has been degraded from B to D.

Outstanding example: Inzonzi Nziza, a women group selling Ice Cream, through exploitation of value addition as promoted by OVOP principles (self relieance and creativity) has introduced unique product which is passion fruit ice cream, attracting new customers and diversifying its offer.

Rubavu district groups' evaluation

A total of 10 OVOP groups had been evaluated:

-8 groups out of 10 have improved their scoring in regard of initial baseline data

-1 group out of 10 have improved its grading in regard of initial baseline data (from C to B-)

-2 groups out of the 10 has decreased their scoring

Outstanding example: OVOP groups in Rubavu district are elaborating a business plan to establish a collective selling point near the main bus station, targeting Rubavu and DRC population.

Musanze disctrict groups' evaluation

A total of 6 OVOP groups had been evaluated:

-5 groups out of 16 have improved their scoring in regard of initial baseline data

-1 group out of 6 have improved its grading in regard of initial baseline data (from C to B-)

-1 group out of the 6 has decreased its grading (from C to D)

Outstanding example: Ingufu zurubyiuruko, a handicraft group composed mainly of women, praised and awarded as best book keeping group in Musanze during evaluation of cooperatives by the district is now procuring pigs to its members as a way to fight back poverty and achieve food security.

Overall evaluation

• 78.5% of all groups have upgraded their screening score and grades. 19% of the group changed their grades (passing from C to B or passing from D to C); the remaining 59.5% changed only their score.

Way forward

V.1 Change of approach in business delivery system (market oriented approach)

From lessons learnt from extension of business services through collective and cluster training, it is planned to shift from "lecture" approach to market oriented one. As a lesson learnt through implementation of OVOP program first phase, it was assessed that extension of business services is to be triggered by real needs and conditions of the market. This market oriented approach expected to improve current approach of extension of business services will be integrated in the business services delivery system of Rwanda OVOP Program for the next phase of implementation of the Program.

V.2 Formulation of quantitative and qualitative indicators

To fully operationalize the benchmarking function of the Rwanda OVOP Program business support system in order to develop an efficient monitoring, evaluation and improvement scheme, quantitative and qualitative indicators are to be identified, developed and agreed upon by respective stakeholders at policy and implementation levels, cluster and individual situation of SMEs accommodated by the Program.

V.3 Formulation of next phase of the Technical Cooperation project of JICA

Through consultations with respective stakeholders based on and reflecting lessons learnt from implementation of the first phase, components of the next Technical Cooperation project of JICA are to be elaborated and agreed upon in regard of development and implementation of Hanga Umurimo Program which is the government flagship SME support Program which will accommodate OVOP implementation.